After several difficult years of budget cuts, we were pleased and relieved that this year's
budget allowed us to offer salary increases to our employees. In the weeks since the budget was
approved, we have been working to get raises to everyone as quickly as possible through the
required bargaining process.

As of today, we have agreed with the California Faculty Association to provide a general
salary increase of 3.5 percent for all members of the bargaining unit, retroactive to July 1.
That agreement includes an understanding that we will continue to bargain on all other matters.
We hope that this increase will give us a start on closing the salary gap with our comparison
institutions.

We have agreed to a contract with the CSU Employees Union for a 3.5 percent average salary
increase, also retroactive to July 1. We expect that this increase will help narrow the market
gap in several classes.

We have finished our bargaining with the Academic Student Employees (UAW), International
Union of Operating Engineers, the Union of American Physicians and Dentists, and the State
Employees Trades Council, and they received their raises retroactive to July 1.

Non-represented employees have received their salary increases retroactive to July 1.

The only remaining employees yet to receive their raises are the Academic Professionals
of California (APC), the Statewide University Police Association (SUPA), and CSU executives.
We are very close to an agreement with APC, but we regret that we are now at impasse with
the police after extending a generous salary offer.

Looking ahead, we have even more good news about salary increases: At the end of October,
at the Board of Trustees’ request, we will be presenting a plan for how we can make significant
progress toward improving salaries for all employees over the next five years, based on the
budget compact agreement.

I know that the past few years of budget cuts have been a difficult time for our employees,
and I sincerely appreciate the hard work that everyone has continued to do on behalf of the CSU
and its students. I am very pleased to be able to give everyone these long-deserved increases and
I look forward to improving salaries even more in the future.

Thank you again for all that you do for the California State University.